[LINK] NBN white-elephant-to-be ...
Jim.Birch at dhhs.tas.gov.au
Wed Aug 25 13:57:13 AEST 2010
Marghanita da Cruz wrote:
> In any event, the NBN in high density urban areas is a non-issue - the
market meets demand.
(1) The universal service of the NBN means that the cost paid by city
dwellers subsidises country connections. I have no real idea, but I
guess that the NBN cost would about half if we booted the most expensive
20% of subscribers off the system. In Australia, we do this kind of
thing with other services like roads, electricity, water, phone, health,
etc, using a variety of mechanisms like taxation, standard charges, etc.
Most people would agree with these practice, to some extent at least.
The NBN provides a fairly robust and isolated mechanism for achieving
this in telecoms.
(2) Apart from providing very fast comms links, another really big key
positive is to eliminate the Telstra copper monopoly. Clearly something
has to be done about Telstra holding the country to ransom. Apart from
overpriced basic services, there are significant cost impacts in terms
of failure to innovate technologically when there's no business case for
a monopoly, and in limiting the competition in services in favour of
exclusive partner deals. The new infrastructure would be publically
owned and customers can swap providers at the flick of a software
switch. I don't see this can be given any kind of dollar figure, but we
can expect these competition benefits to be substantial given the
increasing presence of electronic communication to how we live, work and
play. The market will provide in high density urban areas but you may
find they are locked into someone's vertical market.
Neither of these points are the primary reason for the NBN, and they
could *theoretically* be achieved in other ways, but they are
significant real world benefits of the NBN.
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